Gold Continues to Surge on Brexit Wings

The pound sterling has clearly become the financial casualty of the Brexit referendum. The resulting pound-dollar relationship has neared the low point of its post-referendum range, and will most likely soon test a 30-year support level at 1.3040.

By comparison, Gold has been the financial beneficiary of Brexit. The yellow metal remains the best performing asset class of the year, having moved up 25% in 2016. On July 1, 2016, physical gold was at $1,343 on the spot market, up by $21.00. Its fifth consecutive weekly gain.

On June 23rd, the final results of the EU Referendum concluded that 51.9% voted to leave the European Union (EU). As the UK separates from the European Market, the outlook for gold is positive since, undoubtedly, this safe-haven investment has continued to surge. Also, professional observers anticipate the Fed will delay a possible rate hike until the end of this year. During periods of lower interest rates, gold flourishes more easily, since it tends to encounter less competition from interest-yielding investments.

Meanwhile, the investment bank Société Generale has upgraded its short-term forecast for gold. It projects a price of $1,350 for the fourth quarter of 2016. Its previous gold forecast for the quarter was for $1,150.00.

The entire precious metals complex has followed the shiny metal’s lead. Silver spot price skyrocketed all the way to $20.31. Due to its industrial applications and greater volatility, the “gray metal” tends to outperform gold in a bull market. Platinum too demonstrated a strong Brexit reflex by catapulting to a closing spot price of $1,142, while palladium, closed up $21.86 to a closing spot price of $680.00.

Right now the prospects for gold to continue to move up are excellent. It’s a good time to begin protecting your retirement account with regular purchases of physical gold.

For more information, call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.